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News Topical, Digital Desk : The country's largest lender State Bank of India (SBI) has reduced its lending rates by 25 basis points following the Reserve Bank's policy rate cut, making loans cheaper for existing and new borrowers. With the latest cut, SBI's External Benchmark Linked Rate (EBLR) will come down by 25 basis points to 7.90 percent. This will make home loans cheaper.
Along with making loans cheaper, the bank has also reduced the interest rates on FDs. SBI has reduced interest rates on different FDs.
Reduced interest rate on FD
India's largest bank SBI will cut term deposit rates (FDs) for maturities between 2 years and less than 3 years by 5 basis points (bps), bringing the rates down to 6.40 per cent from 6.45 per cent, while interest rates in other maturity buckets will remain unchanged.
Besides, SBI has cut the interest rate on Amrit Vrishti, a special tenor scheme of "444 days", by 15 bps, bringing it down to 6.45 per cent from 6.60 per cent. Similarly, the one-year maturity rates will be cheaper by 5 basis points to 8.75 per cent and 8.80 per cent, respectively, it said.
New interest rates will be applicable from December 15
SBI's new rates will be effective from December 15, 2025. SBI has also reduced the marginal cost of funds-based lending rate (MCLR) by 5 bps across all categories. With this change, the one-year MCLR will be 8.70 percent, compared to the current 8.75 percent.
The External Benchmark Linked Rate (EBLR), which automatically revises based on changes in the repo rate, has been reduced from 8.15 percent to 7.90 percent. All retail and MSME loans are priced based on the EBLR.
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